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Covered Bonds

EU Commission publishes CBD transposition status

Thorsten Euler

Thorsten Euler


EU Commission publishes for the first time an official overview of the transposition status of the Covered Bond Directive, CBD, in national law. Only five countries are ready as of the beginning of October. The transposition status will be regularly updated and infringement procedures were launched against the 22 laggard countries. Delayed implementation of CBD has had no negative impact on regulatory treatment so far, there is still time until 8 July 2022.

First official status quo of the CBD implementation: only five countries ready

The EU Commission published on 5 October 2021 for the first time on its website an official transposition status of the European Covered Bond Directive CBD into the respective national law of the EU member states. According to this, only Denmark, France, Germany, Hungary and Latvia have so far reported full implementation to Brussels. We had already pointed out in July that only these five EU member states had integrated the CBD into national law by the official deadline of 8 July 2021.

Infringement proceedings are pending against 22 states

Of 19 EU countries, the EU Commission has not received any information on transposition measures taken and a further three states have reported only partial transposition. According to the EU Commission, the overview of the transposition status will be regularly updated when the EU countries have communicated their transposition measures. The Commission has now launched infringement proceedings against all 22 latecomers for non-communication of national transposition measures.


Source: EU Commission, presentation DZ BANK Research, CBD = European Covered Bond Directive

No negative impact yet due to late transposition

In our view, the failure to transpose the CBD into national law on time by 8 July 2021 has so far had no negative impact on the regulatory treatment or risk premiums of covered bonds from the 22 countries concerned. The key will be to ensure that the new rules can be applied on time from 8 July 2022. To that extent, there is still some time for laggards to adjust national covered bond laws and have the changes come into force. If individual countries have not implemented the required EU minimum standards by July 2022, the respective covered bonds risk losing regulatory advantages.

The regulatory disclosures and conflicts of interest of DZ BANK Research can be found here.

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